Automakers have moved factories to the U.S. in response to the tax credit, and that’s created tens of thousands of jobs.

President-elect Donald Trump has suggested eliminating the federal tax credit for electric vehicles, and some experts expect a drop in EV sales to follow.

The loss of the $7,500 federal EV credit under Trump could slash sales by 27%, with California planning state rebates as a response.

Prospective car buyers considering an electric vehicle may need to act fast to get a Biden-era EV tax credit worth up to $7,500, due to the likelihood that President-elect Donald Trump and Republicans on Capitol Hill will axe those savings in tax negotiations next year,

California is prepared to offer state tax rebates for electric vehicle purchases if the incoming Trump administration scuttles the federal EV tax credit, the governor said.

As the incoming Trump administration prepares to make aggressive cuts to government spending, one major provision of the landmark Inflation Reduction Act appears to be on the chopping block: the consumer tax credit for purchasing an electric vehicle.

Volkswagen, Chevrolet, and Tesla buyers are heavily influenced by federal tax incentives, according to a J.D. Power survey.